International Trade and Customs



Meet the Co-chairs - TAG-SP

Hove, John
Scopelitis, Garvin, Light, Hanson & Feary, P.C

International Trade and Customs

Customs Valuation Proposal Seeks to Increase Duties on Imports
 U.S. Customs and Border Protection (CBP) has proposed eliminating the “first sale rule,” which allows importers to reduce duty liability in certain multi-tiered transactions.  73 Fed. Reg. 4254 (Jan. 24, 2008).  Under U.S. law, the preferred method to value imported goods is the transaction value method, or the price of the goods “when sold for export” to the United States.  U.S. Courts and CBP have held that if two sales for export to the U.S. exist, then CBP must assess duties on imported products based on the first sale.  For example, in multi-tiered transactions, importers are able to reduce duty liability by using the sales price between the manufacturer and middle-man, rather than the sales price between the middle-man and U.S. importer.  Elimination of the first sale rule will significantly increase duties for companies currently relying on this rule, and prevent companies from taking advantage of this rule in the future.
Kelley Drye Collier Shannon's client advisory concerning this proposal can be downloaded by clicking KDCS Advisory_Customs Valuation Proposal Seeks to Increase Duties.pdf

On September 14, 2007, the Mexican Congress approved the 2008 tax reform bill. The bill will be finalized when it is signed by President Calderon. The most important aspect of the bill is the implementation of a new minimum corporate tax (or flat rate business tax) called the Impuesto Empresarial a Tasa Unica (IETU). The IETU replaces the prior assets tax. 

TAG Advisors Bureau member BKD publishes Transfer Pricing News four times a year.  The 2007 4th Quarter Edition covers this issue.  It can be downloaded by clicking Transfer Pricing News 11-07.pdf.  If you are interested in future issues of the periodical, contact

William D. James
501 N. Broadway, Suite 600
St. Louis, MO 63102
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"Overview of Canadian Government Procurement Law", by Robert C. Taylor and Lisa M. Bolton, published in The Procurement Lawyer, Volume 42, Number 1, Fall 2006. Copyright 2006 American Bar Association.

Reprinted with permission.

Read the article here. (PDF)